customer wants my SSN# so he can 10-99 me?

Merry Christmas
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mivey

Senior Member
Correct me if this untrue. But I don't think the IRS is trying to fry "small fish". There looking for some "big fish" to fry. Makes me hungry.:grin:
They are kind of like cats. They are likely to slap at anything if it bounces in front of them at today's trigger frequency.
 

brantmacga

Señor Member
Location
Georgia
Occupation
Electrical Monke
Then your banks are breaking Federal Law.

IF the check is made out to a business, the check Must be deposited per Federal Law.
Even if the customer has an account at the same bank, even if there is money in the account to cover the check.

If there is an employee at a bank that is cashing a check that is made out to a company, that person could get into serious trouble.

i'm teaching a business class next week.


you should come.
 

ty

Senior Member
Why? to teach you a thing or two about running a business?
No thanks.
I own and run 3 businesses.
I probably paid more in SS tax alone, last year, than you grossed.
I think I know how it works.
re-read the note from my bank. maybe you will learn something.
 
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Fulthrotl

~Autocorrect is My Worst Enema.~
*randy quietly begins laying out chalk lines for the peeing contest......*

i keep a 100% audit of EVERY dollar i spend, for my own personal use.
that being said, i operate a sole proprietership in california.

i get checks made payable to me personally, and to my business name.
i've gotten them made payable to "Cash" and "Bearer".
i've gotten the money in $100 bills, out of the pants pocket.

i have a personal and business account at wells fargo. i place all money in
the bank, irregardless of the form it comes in. if i barter for chickens,
i'll put them in the vacuum tube at the drive thru teller as well.

head first. it's more humane that way.

i have never had the bank 'care' which account i put the money in.
i have never had the IRS 'care' about anything whatsoever.

i learned something here that i use. i use the neatworks scanner, and scan
ALL DOCUMENTS PERTAINING TO MY BUSINESS. then..... i drop the
checks in the appropriate folders in the program, and the receipts for
what i spend in their appropriate folders.

all of that imports directly into quickbooks, if i like, but instead, i run
reports, priint them out, and make sure they look right. no mis allocated
amounts.

then i put them into turbotax, and that will happen again in two weeks.
then i get my taxes filed electronically.

i do not get creative on my taxes. i pay what my due is. i sleep well at night.

for me to cheat on my taxes, that demonstrates a belief that for me to have
this money, i must steal it. it can't simply arrive legitimately.

that is an expensive belief. i can't afford to believe that.

i needed a new copy of autocad. it's about $4,000... list price anyway.
couldn't justify the cost at this time, but figured i was gonna need it
shortly.

decided that if i needed it, it would show up somehow.

today, a friend of mine gave me his licensed copy of autocad 2008. he
migrated to another platform. i bought him lunch, and thanked him.
he's a good friend.

it's a transferable license if you have the original disk and manuals,
which i do. is it 2010, with all the bells and whistles? no. will it work.
yes.

i wonder if it woulda shown up if i thought i had to steal it to have
it.......

the cool part is that this means i'm gonna need it shortly.... :)
yay. work has been slow recently.


randy
 
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brantmacga

Señor Member
Location
Georgia
Occupation
Electrical Monke
Why? to teach you a thing or two about running a business?
No thanks.
I own and run 3 businesses.
I probably paid more in SS tax alone, last year, than you grossed.
I think I know how it works.
re-read the note from my bank. maybe you will learn something.

:roll:

oh lord.


its not my fault your bank stinks.
 

mivey

Senior Member
...I think I know how it works.
Evidently not.
re-read the note from my bank.
Just one opinion from some guy at a bank. Perhaps you should read some of the links I posted with opinions from people who are more qualified than your average banker (see the bios page I linked). While cashing business check is not generally recommended, doing so with proper procedures is not breaking any federal banking laws.
maybe you will learn something.
Something you seem unwilling to do.
 

mivey

Senior Member
I own and run 3 businesses. I probably paid more in SS tax alone, last year, than you grossed.
Really? :roll: Contests like these are rarely meaningful and you will lose. There are always bigger fish in the pond. At any rate, might does not make right.
 

jim dungar

Moderator
Staff member
Location
Wisconsin
Occupation
Retired Electrical Engineer - Power Systems
Enough - already.

We are about 1 post away from heated disagreement to outright personal attacks.
 

mivey

Senior Member
Enough - already.

We are about 1 post away from heated disagreement to outright personal attacks.
Then let's make it at least 2 away and stick to the facts.

Ty has posted an opinion from one banker who says you can not cash a business check and Ty thinks that the funds MUST be deposited into a business account and deviation from these is breaking a federal law.

I have posted credible sources that say otherwise. My banks do otherwise. Other posters have shown their banks do otherwise. Provided links to opinions from bank auditors, legal councils, security and compliance educators, authors, and other institutions say otherwise.

I will say that it appears it would be unusual for a corporation to cash business checks. But it is common practice for sole proprietor as they and the business essentially have the same identity. They file as one entity with the IRS.
 

rodneee

Senior Member
i don't know who is right or wrong. sounds like it is a case of some banks do and some some banks don't cash corporate checks. i know my bank (wachovia) will not. i have been trying to work that deal forever. they won't do it for me and they said even if the would they have to declare any CASH disbursements over $10,000.
 

zappy

Senior Member
Location
CA.
So is it OK to deposit the checks from my customer's, in my personal checking account? I don't have a business checking account. So the IRS wants to know everything that goes in the checking account, and wants to know where every penny is going when I withdraw from it? Is that why you should have a business account?
 

pfalcon

Senior Member
Location
Indiana
*sigh*

Partnerships, Sole Proprietorships, Independant Contractors must fill out the W-9 when it is sent to them. The IRS requires it. There is a $50 fine for non-compliance.

Businesses making payments to partnerships, sole propriertorships, or independant contractors must file a 1099-MISC for each entity or face a $100 fine for non-compliance. They must obtain the TIN by getting you to fill out the W-9 or report that you refused.

Banks may choose to deposit any check in any account. If you deposit your business check in your personal account then the IRS may audit your personal finances as a part of your business and vice versa.

"Cashing" checks does not actually occur. Provided you have authority to withdraw funds from an account; and provided there are existing funds in the account equal to the check; then you can "cash" the check. The real, previously existing money is withdrawn and temporary (unusable) credit is applied to your account in the same amount. When the check clears then the temporary credit becomes real funds. You are effectively cashing the check with your own money while waiting for the check to clear.
 

rodneee

Senior Member
So is it OK to deposit the checks from my customer's, in my personal checking account? I don't have a business checking account. So the IRS wants to know everything that goes in the checking account, and wants to know where every penny is going when I withdraw from it? Is that why you should have a business account?

i don't think the irs cares where you deposit the funds as long as you declare them as income. i think what they don't want is owners or officers of small corporations showing up at the bank with corporate checks and leaving with a suitcase full of hundred dollar bills. GREAT SCAM IF YOU CAN MAKE IT WORK.
 

ty

Senior Member
i don't think the irs cares where you deposit the funds as long as you declare them as income. i think what they don't want is owners or officers of small corporations showing up at the bank with corporate checks and leaving with a suitcase full of hundred dollar bills. GREAT SCAM IF YOU CAN MAKE IT WORK.
exactly.

While I did follow up at my bank, their CEO told me it is a Federal Regulation(sorry if I said Law, sue me).
He said it is the Loss Prevention Banking Regulation as part of the Bank Secrecy Act. And also the KYC act of 2002.

While there are no banks in my area that would cash a corporate check, he admits that it is possible for a bank in a rural area that don't follow this Regulation to do so.

That being said, it is very unwise for any of you to give banking advise on the verge of having someone audited. Weather you cash these checks yourselfs, or not. Just because your bank does it, does not mean you should tell someone here that their bank will.
Now, if you would like to give me the names and addresses of these fine financial institutions, he would be more than happy if I would send them his way.
 

brantmacga

Señor Member
Location
Georgia
Occupation
Electrical Monke
they won't do it for me and they said even if the would they have to declare any CASH disbursements over $10,000.

that part is true; its not uncommon for business owners I know to ask for multiple $10k checks to stay under the limit.
 

mivey

Senior Member
that part is true; its not uncommon for business owners I know to ask for multiple $10k checks to stay under the limit.
If they do more than one per day, they will generate a CTR. Multiple <$10k checks will generate a SAR so they probably have not avoided anything.
 

jaylectricity

Senior Member
Location
Massachusetts
Occupation
licensed journeyman electrician
Bank of America is already charging $6 for me to cash a check drawn on one of their business account customers. Citizens Bank just started charging $5 for me to cash their customer's check since I don't have an account with them.

No skin off my teeth because I add $10 to the bill of anybody that wants to write me a check drawn on those banks.

I imagine that the banking industry will soon lobby for laws that require them to report any check they cash to the IRS. I'm already putting my fingerprint in the B of A checks. I don't care, because I report the income anyway, but there must be a reason that they're closing down the avenue.
 

jaylectricity

Senior Member
Location
Massachusetts
Occupation
licensed journeyman electrician
Yup...resistance is paranoia. I wish the rebels never threw that tea into the Boston Harbor. They were just paranoid.
 
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